Hong Kong is one of the best places in the world for doing business, and it’s easy to set up a Limited Liability Company (LLC) there. This article will tell you everything you need to know about the basic requirements and documents required to register a company in Hong Kong.
Basic Requirements to Start a Business
Choose a Suitable Company Name
The first step in making a Hong Kong LLC is to develop a good name for the company. The business’s name must be unique and different from any other name in Hong Kong.
To check if your desired company name is available and meets the requirements set by the Hong Kong Companies Registry:
- You can use the online search function on their website.
- Go to the Companies Registry website, click “e-Search” in the menu, and select “Company Name Search” from the dropdown list.
- From there, you can enter your desired company name and see if it’s available for registration.
- Ensuring that your company name meets the requirements is essential to avoid any potential issues during registration.
Directors of Limited Company
Limited Liability Company (LLC) must have at least one director, who can be a person or a company. The director must be over 18 and doesn’t have to live in Hong Kong.
Every LLC needs at least one shareholder, a person or a company. The shareholder doesn’t have to live in Hong Kong.
Significant Controllers Register and Designated Representative
A limited liability company (LLC) must keep a Significant Controllers Register (SCR) to list and keep track of the company’s powerful controllers. The company must also choose a “Designated Representative” to help with the SCR.
A Hong Kong LLC must hire a Company Secretary within 14 days of being formed. The person or business that is the Company Secretary must live in Hong Kong.
A company can have any share capital, but it must be allowed by its Articles of Association and listed there.
The company should have an address in Hong Kong where it is registered. This address can’t be a PO box. It has to be a confirmed address.
The company has to tell certain public things, like where its registered office is, its directors and shareholders are, and the company’s value.
Hong Kong has a territorial tax system, meaning taxes are only paid on income earned in Hong Kong. The business tax rate in Hong Kong is currently 16.5%.
Annual Compliance Requirement
Every company has to file a yearly return and hold an annual general meeting (AGM). The AGM must be held within 18 months of the company’s formation and every 12 months after that.
Government Fees (on or after 1 April 2019)
The government fees for company registration and annual filing are HKD 1,720 and HKD 105, respectively.
What Are the Documents Needed for Hong Kong Company Registration?
Company’s Articles of Association
The Articles contain the rules and regulations governing the LLC’s internal affairs.
Completed Company Registration Form
The company registration form includes details of the registered address, proposed business activities, and details of the director(s), shareholder(s), and company secretary.
If a director or shareholder does not live in Hong Kong, they must show a copy of their passport and proof of where they live outside of Hong Kong.
Directors and shareholders who live in Hong Kong must show a copy of their Hong Kong identity card and proof of where they live.
Corporate directors and shareholders must provide a copy of their parent company’s registration documents, such as the Company Incorporation Certificate and Articles of Association.
You can set up a limited liability company in Hong Kong, and it can provide numerous benefits, including a favorable business environment and a simple tax system. However, considering the high cost of living and strict regulations for financial companies, entrepreneurs should consult with professional service providers to ensure a successful registration process. Hong Kong remains a top destination for business registration, with its well-established legal framework and world-class infrastructure.